For­mer ZC MD com­mends Mukuh­lani on debt so­lu­tion

Sunday News (Zimbabwe) - - Front Page -

FOR­MER Zim­babwe Cricket man­ag­ing di­rec­tor, Faisal Has­nain has praised the or­gan­i­sa­tion’s chair­man Tavengwa Mukuh­lani for the role he played in find­ing a so­lu­tion to ZC’s debt, which saw the cricket mother body’s debts be­ing housed un­der the Zim­babwe As­set Man­age­ment Com­pany.

In his re­port pre­sented at last Fri­day’s ZC annual gen­eral meet­ing, Has­nain, who re­signed from his post in April this year de­scribed how he per­son­ally saw how hard Mukuh­lani worked to find a so­lu­tion to ZC’s debt sit­u­a­tion and achieved an out­come which had no prece­dent.

“Af­ter months of in­tense ne­go­ti­a­tions, the ma­jor land­mark achieve­ment dur­ing this pe­riod was the for­mal ar­range­ment that ZC fi­nally man­aged to reach with the Min­istry of Fi­nance and the Cen­tral Bank. Un­der this ar­range­ment, the Cen­tral Bank was able to take over all the com­mer­cial bank loans of ZC through ZAMCO, its as­set man­age­ment ve­hi­cle,’’ Has­nain wrote.

The ar­range­ment, Has­nain said it gave ZC an op­por­tu­nity to con­sol­i­date and re­fi­nance its ex­pen­sive com­mer­cial loans and trans­fer these un­der Zamco at a much lower in­ter­est rate. Un­der the Zamco ar­range­ment, the in­ter­est rate for the ZC loans is fixed at 6,5 per­cent with the cricket mother body to re­pay the prin­ci­pal amount in 2023 in the form of one bul­let pay­ment.

ZC loans that went un­der Zamco were for NMB Bank, CBZ, Met­bank and Ecobank to­tal­ing $14 mil­lion. ZC man­aged to get a 30% dis­count so have to pay $10 mil­lion at the end of 2023. There are in­di­ca­tions that in 2020, ZC should have set­tled all its cred­i­tors, us­ing the cur­rent con­trolled ICC fund­ing.

It is en­vis­age that with the Zamco so­lu­tion in place, ZC should be able debt free in fu­ture and will not strug­gle to pay salaries with the core busi­ness of cricket be­ing able to thrive. ZC’s legacy debt had con­tin­ued to choke the cricket mother body be­cause of the high in­ter­est rates that were be­ing charged for the loans.

ZC have re-in­tro­duced the fran­chise sys­tem with post for the four gen­eral man­agers to look af­ter these fran­chises hav­ing al­ready been ad­ver­tised. Mukuh­lani made it clear that they were merely re­turn­ing to the old sys­tem of hav­ing cricket be­ing played by the four big prov­inces in the coun­try, which has been ne­ces­si­tated by ZC’s fi­nan­cial sit­u­a­tion.

“We are re-in­tro­duc­ing fran­chise sys­tem, we have gone back to our four big prov­inces, they are be­ing called fran­chises but we are not go­ing back to that ex­pen­sive for­mat. What we want is to have a do­mes­tic struc­ture that is strength for strength and it’s a two-year project,’’ Mukuh­lani said.

Mean­while, Mukuh­lani on Thurs­day met the new ap­pointed Min­is­ter of Youth, Sport, Arts and Re­cre­ation Kirsty Coven­try at her of­fices in Harare. Mukuh­lani was ac­com­pa­nied by ZC act­ing man­ag­ing di­rec­tor Give­more Makoni, con­sul­tant Vince Vint­cent van der Bijl and chief fi­nan­cial of­fi­cer Feroza Shar­iff. The ZC del­e­ga­tion man­aged to brief Coven­try on the go­ings on at ZC, in­clud­ing the ex­clu­sion of all rounder Sikan­dar Raza for the tours to South Africa and Bangladesh. Raza was left out from the two tours af­ter walking out of his con­tract in protest against be­ing de­nied a No-Ob­jec­tion Cer­tifi­cate to play in the Global Twenty20 League in Canada when the na­tional team was in camp prepar­ing for the vis­its to Zim­babwe by Aus­tralia and Pak­istan. —@

Mdaw­ini_29

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